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Money and Markets

DAILY MARKET REPORT
January 18th 2017

EUR/USD

The EUR/USD pair extended its advance up to 1.0718, with the dollar weighed by comments coming from Donald Trump, as he warned that the greenback is “too strong” for US companies to compete with their Chinese counterparts. Furthermore, the risk-averse sentiment seen at the beginning of the week extended into Tuesday, with Asian share markets plummeting and European ones opening sharply lower, and safe-haven assets extending their latest rally. In the data front, Germany released the January ZEW survey, that continued to improve, although by less than expected, with the index up to 16.6 from previous 13.8. For the whole region, sentiment also improved, with the survey reaching 23.2, above previous 18.1, but below the 24.2 expected. In the US, the New York Manufacturing index for January came in at 6.5, down from previous 9.0 and the expected 8.5.

Still the UK Prime Minister Theresa May and the Sterling stole the show this Tuesday, by confirming the UK is ready to go for a hard Brexit, but with a quite conciliatory tone and even agreed to submit to the local parliament the final Brexit deal. Her wording helped to ease near-term concerns over a hard-Brexit, but indeed it will be a bumpy road ahead.

Now trading around 1.0700, the recent advance provides further evidence that the pair has found an interim bottom, and that the upward movement may extend during the upcoming days, towards the critical 1.0800/40 region, which was a strong base during 2015 and 2016. In the 4 hours chart, technical indicators have resumed their advances within positive territory after a modest downward correction, with intraday buying interest now aligned around 1.0650. In the mentioned chart, the price has extended above a bullish 20 SMA, but an extension beyond 1.0720 is now required to confirm a new leg higher.

Support levels: 1.0565 1.0520 1.0485

Resistance levels: 1.0650 1.0710 1.0750

Money and Markets

USD/JPY

The Japanese yen appreciated strongly against its American rival, as investors rushed to dump the American currency after upcoming US president said it was “too strong.” Worldwide stocks closing in the red, and the 10-year Treasury yield falling down to 2.307% earlier Tuesday, the lowest intraday level since Nov. 29, supported the case for a bearish USD/JPY. The pair traded as low as 112.67 before recovering moderately, but poor US data, as the NY Empire State Manufacturing index fell to 6.5 in January from previous 9.0, indicating that business activity in the region grew at a slower rate during the month. Trading at over one-month lows, the pair is technically poised to extend its side, after breaking the key 114.00 figure. In the 4 hours chart, the Momentum indicator maintains a strong bearish slope within negative territory, while the RSI indicator stands at 27, maintaining the risk towards the downside, moreover, the 100 SMA has turned strongly lower above the current level.

Support levels: 112.65 112.20 111.80

Resistance levels: 113.35 113.70 114.00

Money and Markets

GBP/USD

The GBP/USD pair soared after PM Teresa May shed some light over the government Brexit’s plan, as despite confirming the aim to fully leave the EU, including the Single Market, she made some concessions to the local Parliament, as the final Brexit deal will be put to a vote in both Houses. Also, she stated that the government will pursue the best free-trade agreement possible, not only with Europe, but with the rest of the world. The UK will no longer contribute “huge sums” to the EU after the Brexit, but added that in some stances, it may have to make an “appropriate contribution” to be part of European schemes.” The pair reached a daily high of 1.2414 before retreating modestly, holding on to gains early Asia, but is yet to be seen if current gains are sustainable in time, as at the end of the day, Brexit means Brexit. The ball rolled to the EU side, and the concessions they are now willing to make to the leaving country, the first to seriously menace the Union’s integrity. From a technical point of view and in the short term, the 4 hours chart shows that technical indicators have reached extreme overbought territory where they stand, easing their upward strength. In the same chart, the price is well above its 20 SMA and 200 EMA, this last around 1.2320. This year high has been set at 1.2432, with an extension above it favoring a test of the 1.2500 region.

Support levels: 1.2360 1.2325 1.2280

Resistance levels: 1.2435 1.2490 1.2530

Money and Markets

AUD/USD

The AUD/USD pair surged up to 0.7562 on broad dollar’s weakness, with the Aussie aided by a rally in base metals, with gold settling above the key 1,200 threshold for the first time since late November. During the upcoming Asian session, Australia will release its Westpac Consumer confidence data for January, although the main event of the week will be monthly employment figures next Thursday. In the meantime, the pair retains its bullish strength, moreover after breaking above December’s monthly high of 0.7525, now the immediate intraday support. The RBA may get nervous it the pair surpasses the 0.7700 level, but speculative demand will probably persists. From a technical point of view the 4 hours chart shows that the price is firm above a bullish 20 SMA, while technical indicators have lost upward strength, and are currently consolidating alongside with price, far from indicating an upcoming retracement.

Support levels: 0.7525 0.74590 0.7450

Resistance levels: 0.7565 0.7600 0.7640

Money and Markets

GBP/CAD

Pound’s strong u-turn following Theresa May statement sent the GBP/CAD cross up to 1.6193 this Tuesday, ending the day barely below it. UK’s PM May poured some cold water over the hard Brexit she announced, by saying she wants the best for the kingdom and the EU, while pledging to submit the final agreement with the EU to the Parliament vote. The cross not only filled the weekly opening gap, but trimmed most of the previous’ week losses, having corrected almost the 50% of its latest daily slump. Short term, the 1 hour chart shows that technical indicators have turned flat within extreme overbought territory, as most action took place during the London session, giving time for the 20 SMA to catch up, now heading sharply lower below the current level. In the 4 hours chart, technical indicators are flat within overbought levels, rather reflecting the latest pause in price’s action than suggesting upward exhaustion. The 50% retracement of the latest decline stands at 1.6210, now the immediate resistance, with a break above it signaling further advances for the upcoming sessions.

Support levels: 1.6105 1.6040 1.5980

Resistance levels: 1.6210 1.6260 1.6325

Money and Markets

Dow Jones

US stocks closed lower following the lead of their overseas partners, further weighed by latest Trump’s comments that undermined the banking sector, the one that rallied the most since the US elections. The Dow Jones Industrial Average closed 59 points lower at 19,826.77, whilst the Nasdaq Composite lost 0.63% or 35 points, to 5,538.73. The S&P shed 0.30%, to 2,267.88. Within the Dow, JP Morgan was the worst performer, down by 3.82%, followed by Goldman Sachs that closed 3.46% lower. In the daily chart, Dow’s decline does not look significant, but the confidence-based bullish run from late 2016 seems to have come to an end, as day after day, Trump´s comments disappoint investors. The daily chart for the index shows that it held below a still flat 20 DMA, while the Momentum indicator continues to lack directional strength, flat around its 100 level. The RSI indicator however, has accelerated its decline, but stands at 52, not enough to confirm a bearish breakout. Shorter term, the 4 hours chart shows that an early advance was contained by the 20 and 100 SMAs, but also that the index held above a bullish 200 SMA, whilst technical indicators turned higher within negative territory, indicating limited selling interest at this stage.

Support levels: 19,773 19,715 19,658

Resistance levels: 19,846 19,895 19,952

Money and Markets

FTSE

The Footsie fell for the most since last June this Tuesday, after PM Theresa May confirmed the hard Brexit. The index shed 106 points or 1.46% and settled at 7,220.38, weighed by an almost 3% intraday advance in the GBP/USD pair, following the statement. Only 21 members closed with gains, with Rolls Royce topping winners’ list, up by 4.99%. Mining-related equities closed in the red despite metals gained, but because of it, intraday slides were limited. The daily chart shows that technical indicators retreated sharply from extreme overbought readings, now heading south within positive territory, whilst the 20 SMA continues heading higher below the current level, now at 7,167, the level to break to confirm a steeper decline in the days to come. In the 4 hours chart, the index broke below a now flat 20 SMA, whilst technical indicators have turned flat within bearish territory, as a consequence of limited volumes at this time of the day, but far from suggesting bearish exhaustion.

Support levels: 7,167 7,120 7,059

Resistance levels: 7,244 7,293 7,354

Money and Markets

Gold

Gold rally extended to fresh multi-week high of $1,218.77 a troy ounce and settle a few cents above the 1,215.00 level, with most of the intraday gains achieved before UK’s May speech on Brexit. The bright metal was backed by Trump’s comments about the dollar being too strong to be competitive, and held on to gains, despite easing risk aversion in the short term. Worldwide political woes, however, will likely keep gold on demand during the upcoming month, and technical readings support so, after spot surpassed a critical resistance, now support, the 38.2% retracement of the post-US election decline around 1,204.50. Technical indicators in the daily chart have extended their advances, with the RSI indicator now entering overbought territory and the Momentum heading sharply higher at fresh multi-month highs. The same chart shows that the 100 DMA stands at 1,223.60, the next major resistance to surpass. In the 4 hours chart, technical indicators resumed their advances after a modest downward correction and stand above previous daily highs, whilst the 20 SMA extended its advance below the current level, supporting some further gains as long as the price holds above the 1,200 region.

Support levels: 1,208.60 1,198.90 1,193.80

Resistance levels: 1,223.60 1,233.00 1,242.50

Money and Markets

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Branding by Association and Wow!
Committed to helping people achieve their burning intention and critical net worth (CNW), with passion warmth focus and adventure. Luckily with a well established group of successful companies contributing to the process.

David Jean-Baptiste: Executive Chairman and inventor of Flow Centre, a successful clarinettist, saxophonist, trader and entrepreneurial creative thinker. With endorsements as an artist from Henri Selmer Paris .

THE CLARITIQUE QUESTIONNAIRE

(for people desiring to squeeze more juice from life)

1. Can you share one Intention you most desire to achieve?

2. Imagine some likely future situation, what happens when you see yourself making your Intention
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5. What drives your passion positively? Passion sometimes reaches boiling point. What happens
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6. When you learn new ways to do act on intention, beautifully your chances of making it come real
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7. Having a deep sense of fulfillment from within is the best elixir imaginable, magically bringing
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8. Wow moments often come unexpectedly and are often amazing thrilling us to bits. Can you
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9. The word enrichment conjures up a colourful palette of positive emotions in us. Can you tell me
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10. Music is an incredible healing force, enriching the human spirit, also opening and
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David Jean-Baptiste

Time v Income Reality Check

How much income do you earn per hour of work?
How many hours do you work on business that are currently non-income producing?
Where do you have time-leaks?
What impact are they having on your life?
Can you leverage the time that you work?

Open to Change Check

What would your ideal scenario be?
What hours would you like to work?
What income would you like to produce?
Do you prefer one good income stream with potential for growth, or do you prefer a few different income streams?
How closely does your current income stream, hours of work, and type of work correlate to this ideal?

Three Steps to Get Started Now!

1. Get clear, utilize your power of focus and act through your own self knowledge.
2. Get the tools, a workable plan, and include the services of a coach or a consultant. Non-action will cost you. How much?
3. Understand your own pain verses pleasure continuum. People will do more to move away from pain than they will do to move towards pleasure.
Get clear on your vision and mission. Your vision being what you desire at a level of your identity, and mission being why you want it.

What is money? Money is perceived value of something, plus creativity, plus passion.

7 Steps to Wealth Creation

1. Decide what is holding you back and deal with it.
2. Understand what money is.
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5. Understand financial concepts and the skills to create money.
6. Work with the support team you need.
7. Take ‘massive’ consistent wealth action.

4 Ways to Accelerate Your Journey to Financial Freedom

1. Increase your income
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3. Invest more
4. Compound it, so to increase your rate of return.